Gas Prices Surge In America
Gasoline consumption in America has fallen by an average of 1.1% This in combination with the economy today, has made a dramatic after effect on American behavior, overall American consumer behavior, driving habits and lifestyle changes. Since February of 1994, gasoline prices have been on the rise. Costing Americans on average around $3.00 to $3.59 per the gallon rising to almost $4 potentially per the gallon, it is no wonder that we are pushing the “green movement” for an eco-friendlier economy of today. With the continuing rise of oil prices that are pulling gasoline higher in the current economy, American consumers are more likely to hold back on buying gas prices. Today’s weak economy has led Americans to cut back on driving, instead taking public transportation to avoid rising costs of fuel. As a result, the demand for gasoline has slowed with Americans becoming more fuel-efficient.
As consumers are wise spending decisions as result of economy downturn on where to live, what kind of car, what kind of “eco friendly” car, they begin to factor in more intelligently fuel costs, typical consumer spending behavior on goods and services as well as overall impact in every day cost expenses. We are beginning to see hybrid cars, compact cars pushed to market. Automotive changes in choice of car, have a significant impact on the obvious level of gasoline consumption rates which we have seen over the past years however significantly more so as we move toward a more “fuel efficient”, “eco-friendly” lifestyle. Behaviors such as consumer shopping at Wal-Mart, trading in the automobile rides for bicycle rides has left American’s concerned now with an impact on consumer behaviors due to gas price rates rising high, how the American people will be living in the future. Examining the downturn of the economy, the decline in the real estate market has also made significant impact on how we are living today. Real estate developers are building more walkable neighborhoods closer to public transportation and public shopping centers. It’s all about saving in the new economy. Rising gas costs, concerns of commuting, real estate market impacts and retail consumer behavior have certainly made its mark in today’s world.
Convenience is key. 0% The outlook of the future of today’s economy has impact on how much money individuals earn. If earnings stay high, then consumers will obviously keep spending and keep the economy growing. Consumer spending effects 70% of today’s economic output. The recession of 2001 did not impact consumer spending slowdown even through income growth had declined.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.